8:24 < Back Week 15 Activity.pdf Q MATH 422: Math for Business, Spring 422 Worksheet for Week 15. Directions: Discuss the following questions with your classmates/Group. Some questions will have multiple answers, so work together to determine why there may be multiple answers. Once done, please submit your work for questions 1, 2(a, b) and 3a through Gradescope. Your work should be submitted by the end of your recitation. Your grade will consist of the work you do in recitation and submit via Gradescope. 1. (Q50-pg 263) Booker charges $ 4500 to a credit card with a 16.84% annual interest rate. (a) If Booker makes a payment of $ 108.15 each month, how many payments will it take to retire the balance? (b) If the booker makes a payment of $324.45, how many payments will it take to retire the balance? (c) If Booker pays $324.45 each month instead of $108.15, how much will he save in interest charges? 2. Camer buys a house for $287,000. He pays 20% down payment and takes out a mortgage at 4.45% on the balance. Find his monthly payment and the total amount of interest he will pay if the length of the mortgage is (a) 15 years (b) 20 years (c) 30 years (d) If the loan is 30 years. Each month, an extra amount of money equal to was added to the principal. How much more quickly was the loan paid off? monthly payment (e) Calculate how much money is saved in interest payments for part (d) without using the TVM solver. (f) Construct an amortization schedule for the 30-year mortgage with the extra payment (in part d) for the first three payments. 3. Dan owes $7200 to the tree company. He agrees to pay the amount in 9 months at the interest of 12%. Two months before the loan was due, the tree company needed $8000 to pay for a wood chipper. The company decided to sell the note to Mascoma Saving Bank. The bank wants the return on investment to be 14%. How much will the store receive, and is it enough for the wood chipper? 4. A six month $12,500 T-bill carries a discount of $96.50. What is the discounted rate for this T-bill? 5. (pg 268) Find the face value of the zero-coupon bond. (a) 10-year bond at 4.1%; price $13328 1 (b) 20-year bond at 4.2%; price $10,887 6. Which of these 30-year zero-coupon bonds will be worth more at maturity: one that sells for $3890, with a 4.7% interest rate or one that sells for $ 5467, with a 3.9% interest rate? 3 Dashboard Calendar To Do Notifications Inbox